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Financial Accountability
Iowa senator scrutinizes large ministries

by John Carlisle

The fastest-growing faith centers often have the fastest-growing income, and Sen. Chuck Grassley, R.-Iowa, wants to know what all of those offerings pay for. In November of last year, the New York Times reported that Grassley, who chairs the Senate Committee on Finance, contacted several prominent nondenominational ministries and asked them to report specific uses of their funds.

The senator’s inquiry specifically targets mega-churches and large, nondenominational media ministries. Though their financial strength overwhelmingly surpasses the norm, these churches are tax-exempt, and the IRS still classifies them along with traditional, smaller congregations.

Among the list of petitioned leaders were Missouri-based televangelist Joyce Meyer; faith healer Benny Hinn of Grapevine, Texas; and the Rev. Creflo Dollar Jr., whose Atlanta-based World Changers Church International grossed more than $69 million in 2006, according to the Associated Press. In a press release, the committee indicated that Dollar obstinately refused to cooperate and that Hinn has yet to mail in his records. But Grassley and other church watchdog groups think tax investigations into ministries are necessary.

“Jesus comes into the city on a simple mule, and you got people today expanding His Gospel in corporate jets,” Grassley told the Times. “Somebody ought to raise questions about is it right or wrong.” On the senator’s Web site, he states, “I have an obligation to donors and the taxpayers to find out more. People who donated should have their money spent as intended and in adherence with the tax code.” The finance committee asked the clergy to send detailed reports of travel, lodging, home-maintenance and credit-card expenses for which they used tax-exempt funds.

Increased church accountability to the government could raise questions about the interpretation of the First Amendment, which guarantees that “Congress shall make no law … prohibiting the free exercise” of religion. Several of the questioned clergy preach prosperity, Word of Faith theology: that God rewards those who give freely of their time, talent and treasure. Some interpret Grassley’s probe as a governmental critique of theology.

But Jill Kozeny, press secretary for Grassley, says the senator and the committee are not interested in church doctrine, but rather how tax-exempt organizations allocate funds. “A review of how the tax-exempt laws are working or not working is legitimate,” she said. “[It’s] making sure the policies are kept up-to-date.” When asked if further inquiries will be sent out, Kozeny said, “That depends on what develops.”

Another reason the committee sent letters to those specific ministries, Kozeny said, is that none are members of the Evangelical Council on Financial Accountability, a group that accredits churches and ministries based on their accurate and ethical financial reporting. Grassley has always placed self-reform before government reform.

In general, independent, nondenominational churches often aren’t affiliated with synods, something that bothers those who believe nondenominational organizations act without financial watchdogs. Accreditation in other larger groups, such as ECFA, can diminish these concerns.

Other money-minding groups, including Ministry Watch and Wall Watchers, have monitored successful large ministries for many years.

“[Grassley’s] call precipitated debate among church and ministry leaders concerned about overreaching government,” wrote Ministry Watch’s Michael Barrick in a newsletter. “It shouldn’t have. While Grassley’s move is admittedly dramatic, what he has called for is reasonable.” Barrick went on to cite the book of Titus, which advises that “the overseer must be the reproach of God’s stewards.”

Last year, Grassley wrote in the Atlanta Journal-Constitution that Americans donated approximately $295 million to tax-exempt nonprofits.


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